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Finding Your Niche Market: 6 Examples

About the Article

For some brands, it pays to be the big fish in a small pond. Niche markets let businesses speak directly to consumers who are most likely to engage while avoiding the intense competition of marketing in broader, more general markets. So how can you take advantage of a niche market to grow your business? In this article, we’ll further explore some examples and provide some tips for identifying the right niche market for your brand.

What is a Niche Market

A niche market is a smaller segment of a larger market where products are tailored to a narrowly defined set of customers. Products within a niche market typically satisfy specific customer needs, tastes, or preferences. Since these products often have smaller total addressable markets, they allow marketers to better focus their messaging to build a brand with engaged and active customers rather than trying to broadly appeal to everyone.

There are some unique advantages to marketing a product within a niche market:

  • Lower marketing costs
    Hyper-targeting techniques allow you to show your ad only to people who are likely to relate to the product. This should increase conversion rates and lower the marketing spend.
  • More engaging marketing content
    Equipped with intimate knowledge about your niche target audience, you can create hyper-specific content addressing their needs, interests, and pain points in ways which might not land with a larger audience. For example, if you were selling a product to help improve sitting posture, you could tailor the ad content to focus on customers with back pain, knowing they will be most likely to engage with your brand.
  • Fewer competitors
    Large brands typically go after products with larger addressable markets and don’t have the capacity to market directly to all the different narrow segments of people. If you focus on a specific market niche with an underserved need, you can build a brand which becomes the go-to within the space.
  • Passionate customers
    If you can find a market of consumers who really care about a cause or interest and speak to their needs, it’s much more likely you’ll be able to build up a group of customers who are excited about your brand. This can lead to customers ordering regularly and telling their community about the brand. Don’t underestimate word-of-mouth marketing!

6 Examples of Niche Markets

With so much focus on general marketplaces such as Amazon or big box retailers like Walmart, people often overlook the numerous brands which are intensely focused on being the go-to in their specific market niche. However, there are companies of all different sizes and industries which have found a unique niche in their broader market. Some real-world examples of niches include:

  • Social good
  • Home improvement
  • Faith-based communities
  • Education technology
  • Fine art
  • Pet owners

1. Social Good - Blackbaud

Blackbaud is a cloud computing and software as a service provider focusing on the social good niche. Their main product is a fundraising and donor management application which has customers in spaces such as religious, healthcare, and non-profit organizations. By focusing on this niche, Blackbaud has been able to differentiate itself from the numerous other cloud providers and become the leading provider for these organizations.

2. Home Improvement - 3 Day Blinds

3 Day Blinds is a leading manufacturer and seller of custom window treatments. By offering in-home design consultations to ensure their customers receive the best product for their needs, they’ve been able to produce and sell window coverings as well as create a recognizable name and build the trustworthiness of their brand. This is a big differentiator from larger home improvement retailers which try to sell all sorts of different products and may not understand the nuances of specific window treatments.

3. Faith-Based communities - Pushpay

Pushpay provides a donor management system for religious communities. By focusing on the needs of churches and religious organizations, they’ve been able to partner with over 10,500 of these organizations. Unlike other payment systems or CRMs, Pushpay is built specifically for these organizations and therefore can provide a much more tailored solution to fit their unique needs.

4. Education Technology - Hatch Early Learning

Hatch Early Learning is an education technology platform focusing on promoting children’s growth and development. By focusing on preschoolers, Hatch Early Learning can differentiate itself from other e-learning systems and provide a more play-based, visual learning experience to better fit the needs of early learners.

5. Fine Art - GallerySystems

GallerySystems is a software solution for museums and art galleries. They help museum administrators in the acquisition, cataloging, exhibition, photography, and rights management processes. This narrow focus within the broader inventory management market has allowed GallerySystems to capture thousands of customers in over 30 countries around the world.

6. Pet Owners - West Paw Design

West Paw Design is a manufacturer and seller of sustainable pet toys. They produce their products in the US from organic or recyclable materials. Impressively, they have even sourced materials from customers who send back old pet chews. This focus has helped them to gain an avid following of pet owners who care about the environment and locally-sourced manufacturing.

How to Find Your Niche Market

If you have a product but are still trying to understand the niche that it fits in, there are a number of factors you should consider to optimize your brand image and marketing:

  • Customer demographics
    Depending on your customers primary demographics, you may want to consider adjusting how and where you market. For example, if your primary demographic is teenagers, you probably want to focus more on TikTok and Snapchat than LinkedIn.
  • Interests of your target audience
    Oftentimes, certain products will fit well in a general market segment that can indicate certain characteristics about the niche. For example, running shoes are more likely to be popular with people who run and are interested in other running-related brands. Marketing can be tailored more to those communities rather than to the broader shoe-wearing public.
  • Positive trends in customer feedback
    Social media comments and product reviews are goldmines for feedback on how customers are using the product and why. Try to find trends to see who these customers are so you can better adjust your marketing and messaging to fit their preferences.
  • Negative customer feedback
    Conversely, negative feedback can help you understand people who don’t fit your target audience. For example, a barware brand would not do well with people who do not drink alcohol so the marketing should exclude those segments as best as possible.
  • Sources of organic traffic
    If the product is popular in certain communities, you may see organic traffic from places where they interact online. For example, people might discuss a skincare product on online forums or blogs, indicating this is a good place to try to engage with likely customers. You could market through native advertising on the platforms or through search display networks, partner with influencers in the community, or even engage with people directly on the channels.

Setting Up an eCommerce Store For Your New Market Niche

Once you’ve identified your niche market, you’ll need an eCommerce platform which helps you design your service specifically to the needs and tastes of consumers in your niche. Magento provides hundreds of design themes to help you get started selling your products in no time. Get a free demo of Magento to see how you can get started building your niche market brand.

Finding Your Niche Market: 6 Examples